Do I have to declare my rental income in my tax return?
March 2, 2024 | 40,00 EUR | answered by Petra Höfer
Dear tax advisor,
My name is Marcus Heinze and I rent out an apartment to a tenant. This year, I have received rental income for the first time and I am wondering if I need to declare this in my tax return. I am unsure as I have no experience with the taxation of rental income.
So far, I have received the rental income into my account and used it for repairs and maintenance of the rented property. I have heard that I may also be able to claim deductible expenses to reduce my tax burden, but I am not sure how to correctly report these in my tax return.
My concern is that I may make a mistake and face tax-related issues. Therefore, I would be very grateful if you could explain to me whether and how I need to declare my rental income in my tax return. Are there specific forms that I need to fill out? What expenses can I claim as deductible expenses and how do I report them in my tax return?
I want to ensure that I fulfill my tax obligations correctly and do not pay unnecessary taxes. I would be very grateful for your support and expertise in this area.
Sincerely,
Marcus Heinze
Dear Mr. Heinze,
Thank you for your inquiry regarding the taxation of rental income. As a tax advisor specializing in rental and leasing, I am happy to assist you and answer your questions in detail.
First of all, it is important to know that rental income is generally subject to tax and must be reported in your tax return. You must therefore declare the rental income received in your income tax return. There are special forms, such as Annex V, that you must fill out. There, you enter the amount of rental income and can also specify your deductible expenses.
Deductible expenses are costs incurred in connection with the rental property and are tax-deductible. These include, for example, repairs, maintenance measures, insurance premiums, administrative costs, advertising costs, property tax, loan interest, or depreciation on the rented property. You can claim all these expenses as deductible expenses to reduce your tax burden.
To correctly report deductible expenses in your tax return, you should collect and keep all receipts and invoices. You will need these as proof of the expenses incurred. In Annex V, you then enter the total amount of your deductible expenses. Please note that deductible expenses can only be claimed for the rental property and must not be used for personal purposes.
It is important that you fulfill your tax obligations correctly to avoid any tax-related issues. Therefore, I recommend seeking advice from a tax advisor or having your tax return reviewed by an expert to ensure that everything is reported correctly.
I hope this information was helpful to you. If you have any further questions, I am at your disposal.
Best regards,
Petra Höfer
